"… When it is evening, ye say, It will be fair weather: for the sky is red. And in the morning, It will be foul weather to-day: for the sky is red and lowering. O ye hypocrites, ye can discern the face of the sky; but can ye not discern the signs of the times?" The Holy Bible
"Many a so-called wise economist ... had not studied past history enough to know that after the greatest advance in history had culminated … the greatest panic in history must follow ... " W. D. Gann

Tuesday, July 31, 2012

Greece 'on the brink' as cash reserves dry up: Near-bankrupt Greece is fast running out of cash while it waits for its next installment of aid from international lenders, a deputy finance minister has said, sounding the alarm on the country's precarious financial position. (The Telegraph)

France and Italy Seek Ultimate Firepower for ESM: Several leading euro-zone countries want to provide the euro bailout fund with the power to obtain unlimited credit from the European Central Bank to prevent the need for a full-fledged Spanish bailout and calm the markets, according to media reports. In Berlin, German politicians still oppose the proposal. (Spiegel Online)

Italy Worries Sicily's Woes Could Have Ripple Effect: Sicily, whose economy is based on public sector wages, is more than $6 billion in debt (National Public Radio)

2nd Day of Power Failures Cripples Wide Swath of India (The New York Times) India's Power Grid Collapses (The Wall Street Journal) "'This looks even worse than it would normally because there’s an impression that India’s economy is falling apart right now,' said Surjit Singh Bhalla, chairman of New Delhi- based Oxus Fund Management, of this week’s power network failures." (Bloomberg) India plunges into darkness: Trains and subways ground to a halt as more than 600 million people in India faced a blackout after half the national power grid shut down. Experts say the outdated grid cannot keep up with the countryâ?Ts energy needs. NBC's Jim Maceda reports. (NBC Nightly News)

China prepares vast stimulus as slump threatens Asia: China has ditched its reform strategy and prepared a vast stimulus package as the country’s soft-landing turns uncomfortably hard, with recession warnings flashing across East Asia. (The Telegraph)

Congress Leaders Agree On Stopgap U.S. Spending Plan (Bloomberg) US Congress, White House move to deal with fiscal threats (Reuters) "resolving one of the elements of the 'fiscal cliff'" (Dow Jones Newswires)

As ‘fiscal cliff’ looms, debate over pre-Election Day layoff notices heats up (The Washington Post)

Offshore Accounts on the Rise and Costing Taxpayers (The Business Insider) Tax havens: Super-rich 'hiding' at least $21tn (The BBC) Wealth doesn't trickle down – it just floods offshore, research reveals: A far-reaching new study suggests a staggering $21tn in assets has been lost to global tax havens. If taxed, that could have been enough to put parts of Africa back on its feet – and even solve the euro crisis (The Guardian) Exhaustive Study Finds Global Elite Hiding Up to $32 Trillion in Offshore Accounts (Democracy Now!) THE PRICE OF OFFSHORE REVISITED: NEW ESTIMATES FOR “MISSING” GLOBAL PRIVATE WEALTH, INCOME, INEQUALITY, AND LOST TAXES (Tax Justice Network)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.

Sunday, July 29, 2012

Eurogroup Chairman Juncker: Europe Is Running Out Of Time, Will Decide On Measures In Days (The Associated Press)

Only Mario Draghi's ECB can avert global calamity before the year is out: Mario Draghi has promised the moon. The European Central Bank’s council had better deliver on his pledge this week. If it does not, the crisis will surely escalate out of control in August or soon after. (The Telegraph) After Pledge of Help for Euro, Pressure Is On for Bank Chief (The New York Times) "'September will undoubtedly be the crunch time,' one senior euro zone policymaker said." (Reuters)

"The New Depression" Book w/ Glenn Beck & Richard Duncan "The Breakdown of the Paper Money Economy" (Youtube) "Since beginning his career in Hong Kong in 1986, Richard Duncan has served as global head of investment strategy at ABN AMRO Asset Management in London, worked for the World Bank in Washington D.C., headed equity research departments in Bangkok and consulted for the IMF. He is now chief economist at Blackhorse Asset Management in Singapore." (Amazon) [Earlier interview on CNBC at] (Economic Signs of the Times)

Report: Let private student loans be discharged in bankruptcy: Loans are inflexible and a burden in today's weak labor market (The Baltimore Sun) The Price Everybody Talks About and Nobody Really Knows: How Much Does College Cost? (The Atlantic) Student Loan Debt Time Bomb (The Economic Populist) Congressman: Fix The Student Debt Crisis With Bankruptcy Reform (Bloomberg)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.

Neil Barofsky: We Are Going to Have Another Meltdown: Former TARP Inspector General Neil Barofsky on the future of the financial system and why he feels the government would still bail out big banks. (FoxBusiness)

[FDIC board member Thomas M.] Hoenig continues his fight to break up the big banks: Repealing Glass-Steagall made the recent financial crisis more severe, said a former KC Fed chairman. (The Kansas City Star)

Sandy Weill Says Big Banks Should Split Up -- [though "quite a shock," this was "not unlike a ... statement made by his former Citigroup co-CEO, John Reed ... on Moyers & Company earlier this year."] (Bill Moyers & Company)

Summer 2012 Reading List: Choosing the Road to Prosperity: Why We Must End Too Big to Fail – Now by Richard W. Fisher, president & CEO, Federal Reserve Bank of Dallas (The Federal Reserve Bank of Dallas)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.

Sir Mervyn King admits policymakers made 'major mistakes' in financial crisis: Sir Mervyn King, governor of the Bank of England, has said for the first time that the financial crisis was the result of “major mistakes” by economic policymakers and not the bad behaviour of bankers. (The Telegraph) Fraud King Mervyn Lies, Lies, Lies. Post by Max Keiser (Max Keiser)

Drought, deluge and heat-wave blights pea crop: Britain's families will pay more for peas this summer as the year of unpredictable weather leaves growers with a heavily reduced harvest. (The Telegraph)

Regulators close small bank in Georgia for total of 39 US failures in 2012 (The Associated Press) Jasper Banking Company of Jasper GA had a troubled assets ratio of 652%. (BankTracker) Jasper Banking Company, Georgia, Fails After 67 Years And Sold To Stearns Bank (Problem Bank List)

Breaking up the megabanks: Congress should consider again how best to protect Americans from a repeat of the last banking meltdown. [editorial] (The Los Angeles Times) Banking Titans Call for Break Up of “Too Big to Fail” (The Big Picture blog)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.

Thursday, July 26, 2012

Mario Draghi pledges to do 'whatever it takes' to save euro: Mario Draghi, President of the European Central Bank, has pledged to do "whatever it takes" to protect the eurozone from collapse - including fighting unreasonably high government borrowing costs. (The Telegraph) ECB Finds a Way to Buy Sovereign Debt (The Wall Street Journal blogs)Citi sees 90 percent chance of Greece leaving the euro (Reuters) Buiter’s now predicting Grexit probability of 90% (FT Alphaville blog)

The world is closer to a food crisis than most people realise: Unless we move quickly to adopt new population, energy, and water policies, the goal of eradicating hunger will remain just that by Lester R. Brown (The Guardian)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.

Greece To Run Out Of Money In A Month, Second Debt Restructuring Highly Likely (Forbes) Debt crisis: Greece's bondholders could face more losses, says Berlin: One of Angela Merkel's close allies has raised the prospect of another round of write-offs on Greece's debt obligations. (The Telegraph)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.

Tuesday, July 24, 2012

Europe is sleepwalking towards imminent disaster, warn top economists: The euro has completely broken down as a workable system and faces collapse with “incalculable economic losses and human suffering” unless there is a drastic change of course, according to a group of leading economists. (The Telegraph)

High and Dry: The catastrophic drought is even worse for the rest of the economy than it is for farmers. (Slate)

Bad Banks, Big Bailouts and Bruises: ‘Bailout,’ by Neil Barofsky (The New York Times) Former TARP Official: Both Parties are Captive to the Big Banks (Time) Timothy Geithner denies he's cozy with banks (Politico) Geithner 'deeply offended' by charges in new book (USAToday)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.

LIBOR Fraud May Be the Mother of All Bank Scandals by James Rickards (U. S. News & World Report blogs) James Rickards Interview: Gold to $5-7k and Libor Damages Could Destroy the Banking System: Investment banker and Wall Street insider James Rickards says the Libor rate rigging scandal "is the greatest fraud and greatest potential liability in history." He thinks rate rigging banks could be on the hook for "$2.5 trillion," and "The potential damages could destroy the banking system." Join Greg Hunter of USAWatchdog.com as he goes One-on-One with James Rickards. (Youtube)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.

Saturday, July 21, 2012

Crime of the century with Max Kesier: In this edition of the show Max interviews Gerald Celente from trendsresearch.com. He talks about the bankers and governments manipulation of the global interest rates. Gerald Celente is an American trend forecaster, publisher of the Trends Journal, business consultant and author who makes predictions about the global financial markets and other events of historical importance. (Youtube)

ECB’s Draghi: euro “absolutely not” in danger as debt crisis simmers, currency is irrevocable (The Associated Press) Euro is 'irreversible': ECB President Draghi claims there is no danger the single currency bloc will break up (This is Money) ECB's Draghi says euro not in danger (Reuters) The euro is "irreversible" and not in danger, says Draghi: The euro is “irreversible” and the beleaguered currency union is not in danger of collapsing, according to European Central Bank President Mario Draghi. (The Telegraph)

Fears of a third quarter of recession add to Osborne's woes (The Independent) George Osborne under fire as recession continues: George Osborne's record as Chancellor is likely to come under heavy fire this week with offical figures expected to show that the economy has lied mired in recession for a third consecutive quarter. (The Telegraph) Lord Lawson's advice to Osborne: give up the strategy and focus on your job: Former chancellor tells his longtime admirer he needs to devote more time to running Britain's economy (The Guardian) U.K. Second-Quarter GDP Seen Declining 0.2% As Recession Deepens (Bloomberg)

Is the US losing patience with the eurozone debacle?: Having shown the eurozone a lot of latitude, the rest of the world - particularly America - is on the brink of losing patience. (The Telegraph)

Coming: The End of Fiat Money: Stephanie Pomboy, founder of MacroMavens, sees the world hurtling toward a day in which money will again be backed by gold or other hard assets. Until then, she also sees plenty of trouble. (Barron's)

Revolutionary Cycles and the History of Financial Bubbles w/Carlota Perez (Russia Today) "She is Professor of Technology and Development at the Technological University of Tallinn, Estonia" (Carlota Perez)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.

Friday, July 20, 2012

Senior IMF Economist Resigns, Cites Suppression and [pro-]Europe Bias (The Wall Street Journal blogs) IMF economist accuses Fund of suppressing information (Reuters) "After twenty years of service, I am ashamed to have had any association with the Fund at all." [resignation letter @] (CNN Business blogs)

Demand for Spanish Bonds Collapses; "No Money Left to Pay Services" says Treasury Minister; Massive Protests Over Austerity; Two-Year Yield soars 60 Basis Points (Mish's Global Economic Trend Analysis blog) Spain won't grow until 2014 as eurozone agrees bank bailout: Spain's stock market suffered its largest one-day fall in two years after the country revealed it will not return to growth until 2014 and will have to pay an extra €9.1bn next year just to service its debt. (The Telegraph) Bank bailout fails to ease fears for Spain (The Associated Press) How Spain went from quiet to crisis in two days (The Washington Post blogs) Spread Between Spain and Germany Sounds Alarm Bells (The Wall Street Journal blogs)

Widespread Drought Is Likely to Worsen (The New York Times) Food inflation fears grow as corn jumps to record: Long-term food crisis is just beginning, say analysts (Marketwatch) U.S. crops bake in searing heat, no relief for weeks (Reuters)

Libor Interest Rate Scandal - Dave Leonhardt: The best way to restore faith in the banking system is with a trust fall over a cliff, and Dave Leonhardt explains why Libor is not like cupcakes. (Comedy Central's The Colbert Report)

The financial system was systemically corrupt (The Washington Post) Libor Case Documents Show Timid Regulators (The New York Times blog) Libor-fixing problems known at height of financial crisis: British Bankers' Association (BBA) issued a warning to banks in April 2008 to 'submit honest rates' to its Libor setting (The Guardian)

Second Federal Savings and Loan Association of Chicago of Chicago IL had a troubled assets ratio of 412.7%. (BankTracker) Second Federal Savings and Loan Association Of Chicago, IL, Closed By Feds (Problem Bank List)

Goldman Sachs: the bank that thought it ruled the world: Goldman Sachs was ‘doing God's work' - but it is now being investigated for fraud. Harry Wilson reports. (The Telegraph)

The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.